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Definition of Mercantilism :
The following ideas, then, lumped together, may be called mercantilism.
1) Bullionism was the belief that the economic health of a nation could be measured by the amount of precious metal, gold, or silver, which it possessed. The rise of a money economy, the stimulation produced by the influx of bullion from America, the fact that taxes were collected in money, all seemed to support the view that hard money was the source of prosperity, prestige, and strength.
2) Bullionism dictated a favorable balance of trade...
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